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Interest expense: _____________
Depreciation expense: _____________ 8 4. The following
information is for Moyano, Inc. for the year ended December 31,
2016.
Moyano had a cash and cash equivalents balance of $5,200 on
January 1, 2016, and $2,320 on
December 31, 2016. Required: Prepare a statement of cash flows in
good form for the year using the direct
method for operating activities.
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Practice Set Chapters 21 and 25
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Practice Set Chapters 21 and 25 1. Name: B Corporation is
considering a copy machine that can be leased for $4,000 a year for 6
years. The company's marginal tax rate is 27 percent and the yield to
maturity on the company's debt is 5.9 percent. Compute the cost to
lease if lease payments and associated tax savings are at the 

a. beginning of each year Cost to lease = Present value of future cash
flows
= 4000 + 4000/1.059 + 4000/1.059^2 + 4000/1.059^3 + 4000/1.059^4
+ 4000/1.059^5 + 4000/1.059^6
= $

b. end of each year

Cost to lease = Present value of future cash flows =
= 12000/1.059 + 12000/1.059^2 + 12000/1.059^3
+
12000/1.059^4 + 12000/1.059^5 + 12000/1.059^6+12000/1.059^7
= $ 2. You want a new automobile for personal use. Neither
depreciation nor interest payments will be tax deductible. You can
buy
the automobile with a $2,000 down payment and a 9 percent, forty-
eight month loan. The monthly payments will be $665.
Alternately, you can lease the automobile with; a $2000 NON –